Student Details

TABLE OF CONTENTS

EXECUTIVE SUMMARY ........................................ 3

INTRODUCTION ...................................................... 4

1. SITUATION ANALYSIS ....................................... 4

2. BARRIERS TO MARKETING PLANNING ...... 7

3. MARKETING PLANNING ................................. 10

4. ETHICAL ISSUES ............................................... 14

5. IMPLEMENTATION TIMELINE ..................... 15

CONCLUSIONS ....................................................... 16

REFERENCES…………………………………........17
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Executive Summary
Hilton worldwide is one of the largest and the fastest growing global hospitality companies in the
world comprising of 4610 hotels under 13 clearly defined market leading brands in more than
100 countries. Their mission is to be the preeminent global hospitality company- the first choice
for guests, team members and owners alike. Having outstanding financial results over the past
the business now wants to shift some of its focus on to new product and service to capture an
untapped segment of the market. With the world moving towards a more holistic approach in
marketing through being loyal to all its stakeholders, leading to higher expectations from the
brands in terms of service, quality and most importantly the partner relationship management.
Having such a portfolio the business now could extend their product line into film industry,
though it’s a new market but the operations are similar to the current portfolio. Hilton
Worldwide has the necessary resources and skills to operate as a studio business across various
film industries around the world, the operations include the owning of various landmark
properties to be used as both shooting sites and as tourist destinations for its existing customers
and new ones. This simple diversification also includes building studio bases for various types of
movies similar to those of Universal Studios, from the Hotel Industry will create a healthy
portfolio for Wealth Maximization in the long run of the business. The target market is very wide
spread due to the fact that the film industry has a widespread reach around the world which
include both the youth and elderly depending on the type of film the studio would manufacture,
moreover it’s a blessing in disguise for the existing loyal customers accustomed to the brand that
would provide them amazing opportunities in terms of newer destinations as well as meeting
celebrities and movie screening. The overall plan will also relate to the mission that it provides
hospitality in any industry they operate and expand its market range. But moving into a
completely different portfolio is very risky and comprises very high investment. In the long run
such diversification is justified because the landmark sites to be bought will be a source of asset
that has higher future value and also will shape as a source of profit for maintaining the high
number of loyal customers.
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Introduction
Hilton worldwide, having being found nearly 100 years ago and having 758,502 rooms as of
December 2015 with portfolio of 13 brands, it operates through 3 segments – Ownership,
Management and Franchise; and Timeshare. With an owner base of 10,000 and an employee
base of 164,000 people Hilton also maintains a base customer loyalty of more than 50 million.
With 80% of the earnings coming from USA, Hilton 1has served around 140 million guests in
2015.

1. Situation Analysis
The SWOT
The SWOT analysis will comprise the strengths and weaknesses; opportunities and threats the
business Hilton Worldwide have right now. This includes the strength of having a huge loyal
customer base; the weakness includes the completely different diversification from the core
business; the opportunities mean that there will be higher utilization of assets as well as to build
a new reign in new market conditions and lastly the threats are from competitors (Kotler &
Armstrong 2016) that include other hotel business like Intercontinental and Mariott.

Strengths Weakness

1. Hilton’s reputation as a hotel brand. 1. Overseas investments

2. Lucrative location for each 2. Entering a new business in
property dealing with filmmakers.
3. Prospects of real estates in the
targeted locations.
Opportunities Threats
1. Lucrative location of the property
promises many studio contracts.
1. No visible threats.
2. Deals with directors suggest
making connections with various
celebrities. Customers could meet
various actors from time to time,
further increasing Hilton’s brand
image.
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The PESTLE
The PESTLE will go through all the analysis related to the film industry sector as well as the
situations of countries that Hilton plan to operate in. The analysis will be wide spread that cover
every situation of a country so that feasibility can be tested.
The following graph will give the base of PESTLE analysis:

Political
 Political loopholes will be a major factor
that would affect the purchasing and
operations because this might include the
process of bribing leading to higher costs.
 Politically motivated trade unions might
influence the workers and might lead to
problems over wages and other conditions.
 Instable political situation will lead to lower
rates of tourism from both hosts country
and abroad.
 Business travel will be opportunistic if the
political condition approves higher rate of
international engagement over the country.
Economical
 The economic condition of the host country
will play a big role that includes the consumer
confidence, fiscal and monetary policies and
type of economy it is.
 Financial markets as well as the labor market
will play a big role in shaping for such new
venture.
 The size of the economy as well as the long
terms debts will matter because it might lead
the country to bankruptcy like Greece.
 The economic cycle of the past need to be
analyzed to predict the future trend of growth,
boom and slump. Countries in growth and
boom are most proffered.
 Consumer purchasing behavior and the saving
pattern will tell about the expenses on the
tourism sector though that cannot be measure
by the GDP.

Social
 The social issues that may arise will be
doing business on traditions of a country
as the landmark sites usually carry history,
might not be socially acceptable by NGOs
and other groups.
 Attracting tourist from various countries
are sometimes not accepted in the existing
society with its own norms and values, eg-
wearing bikini, etc.
Legal
 Recruitment, employee welfare scheme,
the national minimum wage according to
that area, working conditions regulations
and work permits will be the focus after
buying these landmark properties.
 Local property laws, Taxation
ownership rights as well as operation laws
will be the pivotal to long term success of
Hilton’s new Blue Ocean Strategy.
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Technological
 The mobile application has to cover this new
business so that varied customers can be
reached.
 The cost, speed and efficiency of bookings and
reservations will lead to better customer base if
the technological operations are helpful.
Environmental
 The use, storage and disposal of hazardous and
toxic substances, and waste water disposal.
 The sites are landmark so beautifying them
might need the cutting of trees and other
maintenance might harm the environment
and around the area.
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2. Barriers to Marketing Planning

McDonald has identified 5 broad areas in which marketing planning may have problems:

 Cultural- this signifies the organizational culture meaning the way things are done
around the organization. The changes in the external environment it is very difficult to
maintain a rigid organizational culture.
Thus McDonald comes to the solution that marketing planning cannot be a success
without the support and participation of the culture leaders. In term of Hilton and the
current marketing plan would be a blend in for the current organizational culture. But the
focus has to be on the consistency of coordination to the new workforce that needs to be
employed. Moreover, another significant solution McDonald has given is to measure the
feasibility of the culture before introducing the marketing plan fully.

 Behavioral- the major two aspects of this issue are that lack of top management support
and lack of cross functional involvement. If the coordination between the vision and
mission is not understood major problem will arise in implementing any plan. Also the
involvement of each department is extremely necessary.
The problem can be eliminated through various ways that includes the delegation of some
strategic authority of decision making across all levels of the hierarchy in the
organization. More over another solution to behavior would be to put the marketing plan
across all other departments where practicable and also closer to the customer. The
reports should be discussed thoroughly over all departments so that the plan becomes
more stronger say it financially or through supply chain, etc.
The new blue ocean strategy for Hilton has to pass the same procedure because it
involves big investment and very high tendency of customer support to operate smoothly.
Moreover it should also focus on various issues that create confusion over marketing
function and marketing concept, like confusion of customer service- people no longer
want a cheerful greeting but acknowledges the sincerity of service that they assume
hearing about the brand.
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 Cognitive- relevant knowledge and suitable skills are too necessary for the planning to
work efficiently. Collect relevant data effectively and efficiently, analyze data to reach
relevant conclusions about present and future performance, think imaginatively to
identify a range of possible future options, think critically and analytically to select the
most suitable option and communicate effectively to people at all levels to demonstrate
the benefits of adopting future plans.
The main way to resolve this is through ensuring the marketers in the organization to
have necessary knowledge and skills about the tools outlined below.
 Information- how to get it and how to use it
 Positioning- Market Segmentation, Ansoff, Porter
 Product Life Cycle Analysis- Gap Analysis, Portfolio Management, BCG and
Directional Policy Matrix
 4 x Ps Management- Product Price Place and Promotion

 Systems and Procedures- It identifies the process of planning and monitoring the
process that needs to be followed for a suitable marketing plan. It will also ensure that the
different functions are clear about their role in the marketing planning process.
McDonald has identified the requirement of a common format and a well-documented
marketing plan that each SBUs understand. The purposes for procedures are below:
 To ensure all key issues are systematically considered.
 To pull together the essential elements of the strategic planning of each SBUs in a
consistent manner.
 To help corporate management to compare diverse businesses and to understand
the overall condition of and prospects for the organization.

 Resources- The key resources in the planning process are:

 Time - for example, is time available for the relevant managers to collect
information, analyze it and carry out planning discussions?
 People - do the people available have the right skills and experience?
 Money - is finding available for the purchase of current marketing information?
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The solution to these can come from the 10’s approach that the resources has to be
planned in such a way so that their impact on the organization and their urgency. The
resources for the new marketing plan for Hilton has to be perfect in terms that buying
properties and turning them into the Hilton way will need proper guidance and
supervision. Moreover the emphasis will be on money as the investment is long-term and
very sensitive. Interms of people the top level of hierarchy can be brought from existing
hotel and resorts to sort out the initial phase that will include- training of the new
appoints (hired from the host country), planning and conveying ideas in the Hilton way,
implementing the strategically decision making according to PESTLE of that country,
etc. Time will be focused on the initial planning of the countries to be chosen for
operation and will require the detailed feasibility
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3. Marketing Planning
The new product development process outlines the strategies Hilton Worldwide should use to
make the operation successful.
The New Product: The expansion plan is to enter the film studio business industry. It is an
untapped market for Hilton and prospects are promising. The plan is to acquire manors across the
globe that can be rented as studios for films, commercials, series etc. The manors can also be
rented to people looking to experience a stay at such homes, further extending the service
packages Hilton has to offer.
It has to be noted that by ‘acquiring’ meaning not to lease the manor or castles Hilton wishes to
invest in, but to buy the property completely. The primary business focus may be renting
properties, but the location of each property is the key to success in this expansion plan. Manors
and castles will be bought/ built in lands that will grow in value over time. In the future
whenever a property needs to be sold or leased, the buyer will have to pay for the land under the
franchises, thus securing a higher profit from sales through real estate appreciation.

Stages of the New Product Development:

1. Idea Generation: While generating ideas for a business expansion, three ideas stood
above other. The first one being developing student hostels in various locations of the
world. The second one being an amusement park. Which leaves the third option is the
suggested move of acquiring manors and/or castles around the globe and offering
vacation suites there as well as making them available as studio for global filmmakers to
shoot scenes for movies, series, commercials etc.

2. Idea Screening: The first two ideas, however profitable, is not a viable option for Hilton
Hotels. The student hostels are heavily contested by many other hotels brands.
Competition is fierce and the numbers of available customers are limited. A survey done
concludes that the average cost of rooms at student hostels is around $350-$350 per
week. It would be foolish and repulsive towards Hilton to compromise on its offerings
just for lower price. Also entering an already contested market is not worth it. The
amusement park, a great tourist attraction, would require massive investments. Also the
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location of these parks would be a dwindling obstacle. An amusement park located in a

particular state would mostly be accessible to the townspeople, or those visiting that
particular state. While hotel records can be checked to see which areas attract the highest
number of customers for Hilton, introducing an amusement park in those locations would
cost too much, and in some locations may not be viable for such entertainment.
Eliminating these two ideas, the third one is sticking to what Hilton does best: providing
the hospitality for the customers. Rooms in these manors are open for renting, as well as
renting the entire facility for a program, or for shooting.

3. Concept Testing: A chosen few Lifetime Diamond Hilton members from Honors who
are very frequent in Hilton Hotels, and some renowned movie directors will be invited in
a Focus Group to discuss this business expansion. The Focus Group will be given
complete information regarding the offerings.

4. Business Analysis: To introduce the expansion, 3 properties are primarily selected as

starting location on the basis of real estate price, tourist attraction, attractiveness of the
offered property, rise of real estate price in the future, and availability of property for
Hilton to acquire. The three proposed property, and their details are given below:
 French Chateu in Paris, France: A magnificent 32-bedroom chateu located in
France. It is about 58km away from Paris and is accessible by bus, train, or car.
The chateu dates back to 15th century and has been a historical monument since
1957. The property which is steeped in history comes with parkland of 13.5
hectares (33 acres also listed) which includes woodland and with wonderful views
of the River Seine. The chateau is in good condition even if it needs a little
freshening up. Its asking price is $8.28 million.
 Luxury Wine resort in Barcelona, Spain: A 38,395 square feet luxury wine resort
with 16 bedrooms, and a spectacular spa, located in a country house surrounded
by vineyards. The asking price is of around $18 million. A perfect investment
option that will be a lucrative tourist destination, especially after the recent
Catalonian independence.
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 Tuscan Castle in Chianti, Vineyards, Near Florence and Siena:

Prestigious estate with Castle and about 90 hectares of land for sale
between Florence and Siena, in Tuscany. Surrounded by vineyards and olive
trees, the castle is located on a top of a hill overlooking the rolling Chianti hills, in
Tuscany. Halfway between Florence (35 km) and Siena (48 km), it is located in a
secluded but at the same time easy accessible location, only 1.5 km from the
nearest village with shops and 11 km from Certaldo, picturesque Etruscan town.
Price on request.

5. Product Development: Necessary steps should be taken to acquire these three

mentioned properties. Required renovations should be done if necessary. Once renovation
is complete, these resorts will be listed as available under Hilton Curio. An assortment of
photos will be uploaded to Curio’s website. Leaflets will be printed promoting these
resorts and made available for guests who are staying at Hilton’s different hotels across
the globes. Leaflets will be sent to renowned directors of the film industries globally,
making them aware of the availability of these resorts for shooting.

6. Test Marketing: With all three facilities available for rent, they will be offered to
tourists through a promotion discount to attract customers. Some important figures of the
movie industry can be invited for a stay for promotional purposes as well as letting
actors; directors know what sort of resort it is and what kind of scenery the place has to
offer for movies. The test marketing will run for about six months for promotional
purposes.

7. Commercialization: After the test marketing is done, these resorts will be open for the
mass. Advertisements, both ATL and BTL campaigns will be run for promoting these
exotic locations to tourists.

8. Review of Marketing Performance: After two years of running, a review will be done
as to the profitability of the resorts and whether it matches Hilton’s ROI. Possible
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growths will be considered. If the results are satisfactory, then Hilton will go about
acquiring similar properties across the globe.

4P’s of Marketing

4 P’s (Kotler & Armstrong 2016)are described below-

• Product – The Product should fit the task consumers want it for, it should work and it should
be what the consumers are expecting to get.
The offerings are the three manors mentioned earlier in the new product development. The
properties can be hired entirely for a family visit, rooms can be rented, and are available for rent
for a shooting films.

• Place – The product should be available from where your target consumer finds it easiest to
shop.
The location of the three properties would be- Catalonia, Spain, Italy, and France. Customers can
avail these locations by appointments online.

• Price – The Product should always be seen as representing good value for money. This does
not necessarily mean it should be the cheapest available; one of the main tenets of the marketing
concept is that customers are usually happy to pay a little more for something that works really
well for them.
The price of renting will be determined after accumulating the expenses of acquiring each asset.
Prices shall be determined in lieu of Hilton World wide’s ROI, an average of 3.59% in the past 3
years.

• Promotion – Advertising, PR, Sales Promotion, etc. These tools should be used to put across
the organization’s message to the correct audiences in the manner they would most like to hear,
whether it be informative or appealing to their emotions.
The new location and its offerings will be advertised with both ATL and BTL campaigns. Online
adverts will be placed, placards will be given to every customer visiting any of Hilton’s hotels
globally. Leaflets will be sent to directors and filmmakers worldwide letting them know that the
properties are available for shooting.
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4. Ethical Issues
The plan to acquire various old manors and castles across the globe is of a real estate business.
Although very promising, its execution requires a lot of paperwork done effectively so. Real
estates are profitable business, but also a risky one. A lot of ethical issues may rise from both the
company’s point to the customers.
 Mission: Hilton Hotels aim to become a leading hotel brand recognized for its hospitality
to attract customers worldwide. To provide a cutting edge hospitality, the first step is to
ensure any manors or castles bought fits into Hilton’s high standards.
 Accessibility: The properties acquired must be accessible for the customers. A castle
may be an excellent place to enjoy a vacation but very few would be likely to visit if it is
hard to reach.
 Inspection: The whole point of acquiring manors and castles is to offer customers an
exotic, royal vacation. And also offering the film industries with an ideal location for
themed films. The properties must be properly inspected before purchase to ensure it can
present the aforementioned offerings. Major renovations would be costly, and may
disrupt the property’s uniqueness.
 Legality: It has to be ensured that the property complies with the rules of local
legislation. Legal troubles will hamper Hilton’s reputation.
 Operating Ethics: The new properties has to offer all of Hilton’s ethical and security
promises. Each and every of these manors must the highest security Hilton has to offer to
the customers, ensuring their safety, privacy, and utmost hospitality. This also applicable
when renting the manors as film studios. Hilton must take appropriate steps to prevent
theft, identity fraud, sexual harassment etc.
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5. Implementation Timeline
The first step is to acquire the properties. To settle on a payment method and getting
paper works done would require about 2 months. Then a further 2 months is allocated
for necessary renovations. After that, a promotional campaign will run for about a year,
both ATL and BTL campaigns. Leaflets will be given to all the customers visiting Hilton,
letting them now about the options. Once the properties are available for renting, a
promotional offer will run for about 6 months. Booking and renting can be done at a
discounted price, customers could be given special privileges on their next stay at
Hilton. After 2 years of running, a business analysis will take place where the board will
consider the plan’s performance. If satisfactory, then the business will be expanded to
include more destinations. The timeline of the program is given below:
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Conclusion
The proposed expansion plan for Hilton not only secures a blue ocean for the brand, but also
allows Hilton to stick to what they do best, provide the best hospitality service for its customers.
The expansion will boost Hilton Hotels’ assets, open up a new source of income, and enrich
Hilton’s collection of exquisite vacation manors.
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References
https://csimarket.com/stocks/HLT-Annual-Return-on-Investment-ROI.html
https://www.mansionglobal.com/listings/587405?mod=search
http://www.romolini.co.uk/en/875_2_tuscan_castle_for_sale_vineyard_chianti/property_details.php?i
d=875
https://www.prestigeproperty.co.uk/32-bed-french-chateau-melun-seine-et-marne-paris-ile-de-france-
france-203213

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